anaheim-gazette 1925-01-29

PERSONAL EXEMPTIONS ARE MADE CLEAR Many taxpayers are confused as to what constitutes "the head of a family" and as to the provisions of the income tax laws covering deductions for "dependents." Thousands of taxpayers who have taken incorrect deductions for dependents are summoned to the Internal Revenue office every year. Study this series of questions and answers and you may save yourself an extra trip to the Federal building: Head of Family Q.—What is meant by the head of a family? A.—Internal revenue regulations class as head of a family "a person who actually supports and maintains in one household one or more individuals who are closely connected with him by blood relationship, relationship by marriage, or by adoption and whose right to exercise family control and provide for those dependent individuals is based upon some moral or legal obligation." In the absence of continuous actual residence together, whether or not a person with dependent relatives is a head of a family within the meaning of the statute must depend on the character of the separation. If a father is absent on business, or a child or other dependent is away at school or on a visit, the common home being maintained, exemption as head of a family is allowed. If through force of circumstances, a parent is obliged to maintain his dependent children with relatives or in a boarding house, while he lives elsewhere, the exemption as head of a family is allowed. The regulations further state, however, "If a dependent without necessity (note the last two words) con- distinction of being the first county in the state, which means the United States, in orange production and acreage, walnut production, avocado acreage, plumato production and acreage, second in lemon and bean production and acreage and third in total acreage to fruit. "Some of the outstanding landmarks of agriculture in Orange county include the Irvine ranch, which has the largest field in one body, approximately 25,000 acres; the San Joaquin Fruit Company ranch, with the largest single avocado planting in the county, embracing some 240 acres; the Bastenchury ranch, the largest citrus planting in the country, embracing 2300 acres, and C. E. Utt's vineyard at Lemon Heights, which is the largest planting in Orange county of eastern grapes," the farm advisor says. "According to the latest report of the bureau of census, Orange county ranked fifteenth among the counties of the United States in total valuation of crop and livestock products. Of these fifteen counties, seven of them are in California—Los Angeles being first, Fresno second, San Joaquin fourth, Tulare seventh, Sonoma eighth. San Bernardino twelfth and Orange county fifteenth. "When the proportionate areas of the county are taken into consideration, however, Orange county heads the list with the greatest valuation of crops and livestock per acre. Orange county is less than one-fifth the size of Los Angeles, and at the same rate of production per acre would far exceed the production of that county which ranks first in the United States. Here is some valuable data for Orange county residents to store away in their cranium, or clip and hold for reference, for it shows how the county compares with other representative counties in the state in relation to 901,711 would be to 1935: If, as is added to flax additional rewould be derived. "In addition it has been suggested that increase in would bring in millions of dollars out of consider creases would counting all relevant law, to $ truck fees, plus bus and stage total revenues 000,000. "All these men come out of the motorists, again in view of this motoring act the proposed." FAMED PRODUCTION Fresh green fields where now available to travelers in Californias actually all the with many west. The rapid farming in California states now tenant supply of vegetables, so they acts practically from dining car cliff Company. This fact is no report just manager of district railway favorable com- child or other dependent is away at school or on a visit, the common home being maintained, exemption as head of a family is allowed. If through force of circumstances, a parent is obliged to maintain his dependent children with relatives or in a boarding house, while he lives elsewhere, the exemption as head of a family is allowed. The regulations further state, however, "If a dependent without necessity (note the last two words) continuously makes his home elsewhere, his benefactor is not the head of a family, irrespective of the question of support. Q.—A widower has a child over 18 years of age, whom he supports, who is away from home attending school. What personal exemption may be claimed by the widower who maintains the home? A.—He is entitled to claim a personal exemption of $2,500 as head of a family. Q.—What personal exemption may be claimed by a son who actually supports and maintains his dependent mother elsewhere than in his own home by reason of the fact that he is unable to earn enough to support both in the mother's place of abode to defray their joint expenses in his place of employment? A.—The son is properly classified for income tax purposes as the head of a family and as such is entitled to claim a personal exemption of $2,500. Other Exemptions Made Clear Q.—In the case both a husband and wife contribute to the support of a dependent, how is the credit of $400 for dependents to be treated? A.—The credit of $400 must be taken by the one contributing the chief support and may not be divided between them. Q.—I was not actually living with my wife on December 31, 1924, due to her mental incompetency at that time and consequent confinement in an institution for treatment. What personal exemption may I claim in my return for the year 1924? A.—The separation of a husband and wife due to the fact that either has been declared incompetent and confined in an institution for treatment is held to be temporary in character and consequently without effect in so far as the joint personal exemption is concerned. In such cases you may claim $2,500 as a personal exemption. File Report: Although No Tax Imposed the list with the greatest valuation of crops and livestock per acre. Orange county is less than one-fifth the size of Los Angeles, and at the same rate of production per acre would far exceed the production of that county which ranks first in the United States. Here is some valuable data for Orange county residents to store away in their cranium, or clip and hold for reference, for it shows how the county compares with other representative counties in the state in relation to land area, number of farms, valuations, etc. The land area of Orange county is 708,000 acres. In other counties it is follows: Los Angeles, 2,633,000; San Bernardino, 12,912,000; Riverside, 1,622,720; Fresno, 3,808,000. Orange county has 4,188 farms. Los Angeles county has 12,444; Fresno, 1,917; San Bernardino, 4,023; San Diego, 3,200; Riverside, 3,949; San Francisco, 74; state, 137,670. In Orange county the value of all property per farm is $42.183. In Los Angeles county it is $31.871; Colusa $50.369; San Diego $20.026; Fresno $33.991; state $29.158. In Orange county the value per acre is $481. In Los Angeles county it is $386; Colusa $77; San Diego $54; San Francisco $1.102; state $94. THE GASOLINE TAX It is high time that the lowly motorist in California register a determined protest against further increases in the tax hills he, as a motorist, is compelled to pay. In the opinion of Assemblywoman Grace S. Dorris of Takersfield. She, together with many other legislators, has given considerable attention to the increase in motor vehicle taxes proposed as a means of raising additional funds for highway purposes. "As I see it," said Assemblywoman Dorris today, "the real question is not how to raise more highway funds but why. The motoring public have stood for the 2-cent tax on gasoline but I am sure they will follow the action of the voters of Massachusetts in the event any legislation increasing the present gasoline tax should be enacted. In Massachusetts last November the people voted down increased taxation as represented by a 2-cent gas tax by a majority of 270,000. "The present gasoline tax is in effect a sales tax, and while there are many advocates of that form of taxation..." The rapid decline farming in California states now stant supply of vegetables, so acts practically from dining car cliff company. Favorable products of these by travelers from the South added. Travelers serve materially in its products grown Southern Pacific reason unusual before them the able prepared famous chefs. Buyers for these are out over the searching west best products point may well dining car depot of service, and are operated at. At present thung from ranch Pismo valleys from a sugar content June peas. The days during this has been rem Pollock. Western travel with Kentucky received from the Concholla the Sacrament tender and of effects. Lettuce on an anywhere is better from the Guadion to the from the Immer Artichokes and Moon bay, wholly valley telegraphs is grow delta region. Diners from valley is large and long the effects Ranchers now are growing... A.—The separation of a husband and wife due to the fact that either has been declared incompetent and confined in an institution for treatment is held to be temporary in character and consequently without effect in so far as the joint personal exemption is concerned. In such cases you may claim $2,500 as a personal exemption. File Report, Although No Tax Imposed Q.—I am the sole support of my mother, maintaining a home in which she and I live, and therefore, claim as head of a family a personal exemption of $2,500. My net income, however, for taxable purposes is only $2,300. Am I required to file a return in view of the fact that I do not have to pay a tax? A.—Yes. In such a case you are required to file a return, although you are not subject to tax. The head of a household if unmarried is classed as a single person and must file a return if his net income is $1,000 or more or his gross income is $6,000 or more. FIGURES COMPILED BY FARM ADVISOR HERE The agricultural industry of Orange county, very appropriately designated "Nature's Prolific Wonderland," stands out prominently in state and national agriculture. It was revealed this week by Harold E. Wahlberg, county farm advisor, who has compiled comparative statistics from various sources—the federal census of 1920, county records and the crop survey made by the farm bureau and the horticultural commissioner's office. Wahlberg says the county has that stood for the 2-cent tax on gasoline but I am sure they will follow the action of the voters of Massachusetts in the event any legislation increasing the present gasoline tax should be enacted. In Massachusetts last November the people voted down increased taxation as represented by a 2-cent gas tax by a majority of 270,000. "The present gasoline tax is in effect a sales tax, and while there are many advocates of that form of taxation, the extreme limit which I have ever heard suggested for that sort of tax was about 2 per cent, whereas this sales tax, if increased to 3 cents per gallon is equal to 20 per cent of the retail price. The present 2-cent tax is equivalent to 12½ per cent of the value of the commodity sold. This is a high ad valorem tax. Even the government in taxing non-essentials such as theatre tickets considers 10 per cent of the value of the tickets sold sufficient. Gasoline is a staple commodity and a necessity and a higher ad valorem tax is unwarranted and unsound in economic principle. "Using 1924 revenues and estimated 1925 revenues as a base, a total gasoline tax income under the existing law amounting to $263,803,422 would be obtained during the 10-year-period beginning with 1926. For the same period registration fees would bring an additional revenue of $134,916,599. Federal aid amounting to $2,750,000 per year and bus and stage/revenues of $600,000 per year—a combined total of $33,500,000 for 10 years—are not included in the foregoing estimate. "The total revenue from all the foregoing sources would be $432,220,021, or an average of over $43,000,000 annually." If a gasoline tax of 1 cent per gallon should be added to the present tax, an additional revenue of $131, ANAHEIM GAZETTE 901,711 would be derived from 1926 to 1935: If, as has been proposed, $2 is added to flat registration fees, an additional revenue of $50,311,080 would be derived. In addition to these proposals, it has been suggested that there will be an increase in fees for trucks which would bring in receipts of many millions of dollars. Leaving this entirely out of consideration, the other increases would bring the grand total, counting all receipts under the present law, to $614,432,812. Increased truck fees, plus probable increases in bus and stage fees, would bring the total revenues to more than $700,000. "All these millions would have to come out of the pockets of California motorists, again excepting federal aid. In view of this, it seems to me that the motoring public has a kick coming if the legislature attempts to enact the proposed legislation." FAMED PRODUCTS FROM OUR WINTER GARDEN Fresh green vegetables, right from the fields where they are grown, are now available to winter residents and travelers in California and the West. Fresh berries, too, may be had virtually all the year round, together with many western grown fruits. The rapid development of winter farming in California and neighboring states now is producing a constant supply of excellent fresh green vegetables, so that such canned products practically have been eliminated from dining cars of the Southern Pacific Company. This fact is brought to the fore in a report just issued by Allan Pollock, manager of dining cars, restaurants and railway clubs of the railroad. Favorable comment on these winter onion of a quality that cannot be excelled. Early berries come from the Watsonville section and also the Imperial valley. Apples of a uniform size are specially packed at the orchards in California and Oregon for Southern Pacific dining cars. Travelers frequently comment upon their good flavor. "In fact," Pollock stated, "during the last two seasons the development of winter farming in the West has made almost unbelievable strides. And when an eastern resident eats such products in our dining cars in winter and learns they are fresh from our ranches, he can not help but wish he had a home out here and his own garden." M. Eugene Durfee ARCHITECT Room 5, Cassius Mldg Phone 692 Anaheim Don’t Delay In Having Your Headlights Adjusted Official Headlight Adjusting Station AUTOMOTIVE ELECTRIC CO A Complete Line of Men’s, Boys and Children’s New Shoes Now on Display at the EAST SIDE SHOE STORE The rapid development of winter farming in California and neighboring states now is producing a constant supply of excellent fresh green vegetables, so that such canned products practically have been eliminated from dining cars of the Southern Pacific Company. This fact is brought to the fore in a report just issued by Allan Pollock, manager of dining cars, restaurants and railway clubs of the railroad. Favorable comment on these winter products of the West daily is made by travelers from the East on trains on the Southern Pacific, Pollock added. Travelers served in dining cars aid materially in spreading the fame of products grown in the territory along Southern Pacific lines. For this reason unusual care is taken to place before them the finest foods obtainable, prepared by the company's famous chefs. Buyers for the railroad constantly are out over the territory personally searching western markets for the best products. In this connection, the point may well be emphasized that the dining car department is entirely one of service, and not of profit. The cars are operated at great expense. At present the company is obtaining from ranches in the Imperial and Pismo valleys fresh green peas having a sugar content not even exceeded by June peas. The development of winter peas during the last two years truly has been remarkable, according to Pollock. Western travelers are delighted, too, with Kentucky Wonder string beans received from the Indio district, in the Conchells valley, and also from the Sacramento valley. They are tender and of fine quality in all respects. Lettuce on a par with that crown anywhere is being received this winter from the Guadalupe section. In addition to the famed winter lettuce from the Imperial valley. Artichokes are obtained from Half Moon bay, while cucumbers from Imperial valley tempt the traveler. Asparagus is grown in the Sacramento delta region. Eggplant supplied the diners from farms in the Imperial valley is large and well polished, showing the effects of sunshine and moisture. Ranchers in the Indio district now are growing a species of Spanish In Having Your Headlights Adjusted Official Headlight Adjusting Station AUTOMOTIVE ELECTRIC CO. 234 S Los Angeles St. Golden Rule Investment Ross Turbine Engine Par Value, $1.00 per share. Main Office, 137 S. Los Angeles Wanted Ten Thousand Collectively subscribed for stock at par value, $1.00 per share a member of the Board of Directors to represent them. Are you an industrial booster? If not, why not? We have orders to the amount of $25,000 to start on. Want this pay-roll here? You can best answer this by sending Collectively subscribed for stock at par value, $1.00 per share a member of the Board of Directors to represent them. Money Are you an industrial booster? If not, why not? The We have orders to the amount of $25,000 to start on. You want this pay-roll here? You can best answer this by sending one or more shares of stock. I will call a meeting of the subseisces deposited in local bank, and you can elect your director. I want a local man or woman to serve on the Board of D about the future possibilities of the Ross Turbine Engine. It is open to every possible investigation. There are no sentations. But, on the other hand, an honest proposition, management. This $10,000 must be subscribed in one week if I am to wait—act now. The value of your stock is bound to increase. Call, phone or write for printed literature. We will also CONSULTING ENGINEERS—INVENTIONS DEVELOPED DRAFTSMEN AND PATTERN MAKING Hydro Turbine Engines—Steam Turbine Engines—Air Motors Molding Machines and Concrete Mixers—General Contracting Electric and Acetylene Welding—Cylinder and Crank Shaft GENERAL BLACKSMITHING The Body Needs MEAT! Meat quickly supplies warmth and nourishing red blood so necessary during cold wintry weather. Your body needs it. That's why a savory steak, or a tempting roast tastes so good at winter meals. There is a difference in the meat you buy. We serve only the best quality. Knott's Market 243 West Center-Two Stores-1119 Lincoln Ave. Phone 896 Phone 800 Investment Opportunity Engine Company, Inc. Capitalization, $250,000 137 S. Los Angeles St., Anaheim, Calif. $10,000 Thousand Dollars par value, $1.00 per share. The subscribers to this $10,000 pool will elect represent them. Money will be deposited in local bank. If not, why not? The future possibilities of this industry are unlimited. $25,000 to start on. When we open this plant here in Anaheim, do you answer this by sending your check, bank draft, or P.O. money order for par value, $1.00 per share. The subscribers to this $10,000 pool will elect represent them. Money will be deposited in local bank. if not, why not? The future possibilities of this industry are unlimited. $25,000 to start on. When we open this plant here in Anaheim, do you answer this by sending your check, bank draft, or P. O. money order for a meeting of the subscribers to this pool when the full amount of $10,000 reject your director. serve on the Board of Directors of our company to tell the people the truth of Turbine Engine. navigation. There are no secrets, no subterfuges, no evasions, no misrepresnation proposition, fostered and promoted by an honest and efficient in one week if I am to know that Anaheim wants this industry. Do not is bound to increase when development starts. frature. We will also send our representative to see you. ATIONS DEVELOPED—MECHANICAL ENGINEERS—MACHINISTS AND PATTERN MAKERS—MANUFACTURERS Engines—Air Motors and Appliances—Ornamental Cast Iron Lamp Posts Fixers—General Contractors for Machine Foundry and Pattern Work Cylinder and Crank Shaft Grinding—Automobile Repair Department IRON AND BRASS CASTINGS